Home prices in New Mexico are playing the role of tortoise while prices nationwide are moving like a hare as the housing market continues to recover, according to the latest Home Price Index report from CoreLogic.
The average home price in the state increased 2 percent in September compared to a year earlier, while home prices nationwide jumped 12 percent over the same 12-month period, the Irvine, Calif.-based company reported Tuesday. New Mexico had the third-lowest increase in the 50 states.
Home prices in the Albuquerque metro area appear to be a major drag on the statewide average, creeping up by only 0.9 percent in September from the same month in 2012, CoreLogic reported.
No states posted a home price drop in September, both on a year-over-year basis and month-over-month basis. Average home prices in nearly half the states are now within striking distance of their pre-downturn pricing peaks, CoreLogic noted in its report.
“September marked the unofficial five-year anniversary of the start of the housing crisis,” said Mark Fleming, chief economist for CoreLogic. “The five-year home price appreciation for all homes in the nation was 3.4 percent. While there is still room for improvement, the CoreLogic HPI is at the highest level since May 2008.”
As of September, the average home price in New Mexico was still down by 18.4 percent from the peak price of May 2007. For comparison, the average home price in neighboring Arizona was still down by 32.1 percent from its June 2006 peak, while the average price in Colorado is on the verge of a full recovery.
Nationwide, the average home price was 17.4 percent below the peak in September. In addition to Arizona, states that remain well off their home price peaks are Nevada at 41.4 percent, Florida at 37.7 percent, Rhode Island at 28.3 percent and West Virginia at 26.5 percent.
Average home prices have fully recovered in Nebraska, North Dakota, South Dakota and Vermont.
CoreLogic uses a huge database to track the sales prices of the same properties as they are bought and sold over time. While CoreLogic does not specify a dollar figure for average home price, the Greater Albuquerque Association of Realtors reported an average home price of $212,307 in September.